That is called a Break Even Point
gross profit
Yes, gross profit minus expenses equal to net income as proved by following: Sales xxxx less: Cost of sales xxxx Gross profit xxxx Less: Admin & Selling expenses xxxx Other expenses xxxx Net Income xxxx
yes
I believe so. Net Income is equal to the income that a firm has after subtracting costs and expenses from the total revenue.
That level of sales at which profit if the business is zero or revenue earned is equal to cost incurred.
Net income plus operating expenses equals gross profit, or total revenue. To calculate net income, accountants subtract total expenses from total revenues.
gross profit
Yes, gross profit minus expenses equal to net income as proved by following: Sales xxxx less: Cost of sales xxxx Gross profit xxxx Less: Admin & Selling expenses xxxx Other expenses xxxx Net Income xxxx
Your mariginal revenue must equal your marginal cost.
yes
equal to marginal revenue
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
Its the level of production where marginal cost is equal to marginal revenue.
I believe so. Net Income is equal to the income that a firm has after subtracting costs and expenses from the total revenue.
Profit maximization is the process by which a business seeks to achieve the highest possible profit from its operations. This involves optimizing the balance between revenues and costs, often through strategies such as increasing sales, reducing expenses, or improving operational efficiency. The ultimate goal is to identify the level of output where marginal costs equal marginal revenue, thus maximizing the difference between total revenue and total costs. In essence, profit maximization helps businesses make informed decisions that drive financial success.
If you mean "There is neither any profit nor any loss in business, then what is that situation called ?". Then the answer is that such a situation is typically called as the "Break-Even point", or a "no-profit-no-loss" situation. This happens when the Gross Profit that you earn from a business is exactly equal to the Fixed Expenses of the business. Using an example, suppose I sell 1000 fans at Rs. 100/00 each, which I bought for Rs. 80/00 each. Opening stock and closing stock was Rs. 15000/-. So 100000 + 15000 - (15,000 + 80,000) = 1,15,000 - 95,000 = 20,000 would be my Gross Profit, assuming there are no other variable costs, like Transportation, Freight Inwards etc. In that scenario, if my fixed expenses, like Electricity Expenses, Salary Expenses, Bank Interest etc. aggregated to Rs. 20,000/-, i.e. exactly equal to my Gross Profit, it would mean that I am at my "Break-Even Point".
Contribution margin is computed as sales revenue minus variable expenses